Raysut Cement is planning to set up a joint venture (JV) cement grinding plant in Barbara, Somaliland with an estimated project cost of US$40mn.
‘Raysut Cement and MSG Group of Companies Limited have agreed to establish a cement grinding unit in Somaliland with a production capacity of 1mn tonnes of cement per annum,’ Raysut Cement said in a disclosure filed to the Muscat Securities Market.
It said, ‘The estimated project cost is about US$40mn whereas Raysut Cement’s share is 55 percent of the share capital and MSG’s share is 45 percent.’
The company added that it will provide additional information related to this project later.
The Government of Somaliland has not yet issued a statement regarding the acquisition of the two companies from a cement factory in Berbera, the previous government led by President Silanyo handed the now-defunct cement plant to three companies, Kuwaiti company, three Somaliland owned and the government which owned 10%.